tag:blogger.com,1999:blog-7294165939647321702.post1579879662202010287..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: S&P Price To BookSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7294165939647321702.post-15712214772778219942009-10-17T23:40:41.270-04:002009-10-17T23:40:41.270-04:00And it is also important to look at the capital st...And it is also important to look at the capital structure. Several companies had tons of extra cash and no debt. Just look at the tech sector.<br /><br />I wonder if someone has ran a (MV+Debt)/EV analysis.PlanMaestrohttp://variantperceptions.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-13874154915925753742009-10-15T08:42:39.315-04:002009-10-15T08:42:39.315-04:00I think when looking at price-to-book and comparin...I think when looking at price-to-book and comparing them with levels decades ago, you need to take into account that companies these days may run at higher returns on equity. Specifically, I'm thinking of software companies that don't have high manufacturing or distribution costs so they don't have those kinds of assets. Google is trading at about 5 times book value, but at a p/e of 37. Even if you believe Google is overpriced (I do), a valuation with a p/e of 15 will still give Google a p/b of over 2.aaaaahttps://www.blogger.com/profile/10185747029148606555noreply@blogger.com